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Under The Hood Of Kima Ventures

Venture Prose • 1058 implied HN points • 03 Jul 20
💼 Business Venture Capital Investment strategy Startup funding Portfolio Management Performance
  1. Kima Ventures, led by Xavier Niel, focuses on investing in French tech founders worldwide.
  2. Their investment strategy involves making $150k investments in 100 new startups annually, with a particular focus on French tech founders.
  3. Kima Ventures aims to stay with companies for the long haul, providing support through their portfolio management platform and maintaining steady returns.

Factors come and go…

Klement on Investing • 4 implied HN points • 12 Dec 24
💰 Finance Investing Market Trends Portfolio Management Risk Assessment Economic Factors
  1. Investment trends often come and go, leading to mixed results. It's important to recognize that what works today may not work tomorrow.
  2. Combining different types of investments can help manage risks, but it also comes with uncertainties about what factors might perform well in the future.
  3. Using flexible models that adapt to changing market conditions can be useful, but they can overlook new factors that may become important. The investment world is always changing, making it an exciting challenge.

38 stock ideas for 2024.

Jon’s Newsletter • 39 implied HN points • 30 Dec 23
💰 Finance Investments Stock Market Market Analysis Economic outlook Portfolio Management
  1. Investing in sectors like industrials, materials, and financials is recommended for good returns. Companies in these areas often generate high cash flow and have strong dividends.
  2. Some experts believe that consumer staples and financial stocks will do better in 2024 as they can benefit from lower interest rates and inflation-related price increases.
  3. It's a good idea to consider mid-sized companies and precious metals for investment, as they may have better valuations and growth potential amid an uncertain economic environment.
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Investing Update: Q4 Top Ideas & Q3 Recap

Spilled Coffee • 12 implied HN points • 05 Oct 24
💰 Finance Investing Market Trends Stock Analysis Economic Indicators Portfolio Management
  1. The stock market has been doing really well, with the S&P 500 seeing a strong start this year. It's the best start since 1997, which is exciting for investors.
  2. In the third quarter, the S&P 500 had its best performance since 2020, and many stocks outperformed the index. This shows healthy growth and optimism in the market.
  3. Certain sectors like utilities are doing great, while energy stocks are lagging behind. It's important to pay attention to these trends when investing.

In tech we trust?

Jon’s Newsletter • 39 implied HN points • 24 Sep 23
💰 Finance Investing Stock Market Economic Trends Portfolio Management
  1. The stock market has seen a drop recently, with tech stocks struggling more than others. Investors are worried about rising interest rates and potential recession.
  2. Despite the downturn, some experts believe investing in tech can lead to growth in the long run. Companies in tech can adapt and thrive even during tough economic times.
  3. Certain tech stocks, like Apple and Microsoft, are still seen as good investments due to their potential for continued growth and strong market positions.

Footwork at Year 2

next big thing • 76 implied HN points • 13 Apr 23
💼 Business Venture Capital Investments Entrepreneurship Diversity Portfolio Management
  1. Footwork is an early-stage venture capital firm focused on making a handful of new investments each year.
  2. Their portfolio includes companies like Table22, Via, and Cradlewise, with a focus on diversity and close partnerships with founders.
  3. Despite market fluctuations, Footwork remains excited about new investments, with a specific interest in AI, climate tech, and education models.

The most sophisticated test of ESG fund performance, yet

Klement on Investing • 2 implied HN points • 18 Nov 24
💰 Finance Investing Economics Sustainability Market Analysis Portfolio Management
  1. Studies show that ESG funds and conventional funds have similar returns, typically around 0.2% to 0.3% difference per year. This means investing in ESG doesn't significantly affect your returns.
  2. Critics argue ESG funds often perform slightly worse than traditional ones, which raises questions about the returns of sustainable investing.
  3. Overall, recent research found no significant difference in performance between ESG and conventional funds, which may disappoint both supporters and opponents of ESG investing.

The growing partisan divide in US investor portfolios

Klement on Investing • 2 implied HN points • 28 Oct 24
💰 Finance Investing Consumer behavior Political Influence Market Trends Portfolio Management
  1. Many US investors change their opinions about the economy depending on who is President. When their party is in power, they tend to feel more positive about economic conditions and vice versa.
  2. The partisan divide affects actual investment decisions, like how credit analysts rate companies based on the President's party. This can increase the costs for businesses if the opposition party is in charge.
  3. ESG investing shows a clear divide, with Democratic fund managers favoring these investments more than Republican ones. Mixing politics with investing can lead to missed opportunities.

Quant Letter: November 2023, Week 4

The Parlour • 21 implied HN points • 29 Nov 23
💰 Finance Machine Learning Quantitative finance Financial Modeling Portfolio Management
  1. The paper introduces a methodology using Shapley values to understand the contribution of different factors in portfolio performance.
  2. It presents the versatile SPPC method for evaluating predictor group contributions to portfolio success.
  3. The SPPC method quantifies predictor impacts and offers insights into changing dynamics over time in financial machine learning.

Risk of Ruin

Net Interest • 24 implied HN points • 13 Oct 23
💰 Finance Risk management Investing Behavioral Finance Portfolio Management Cryptocurrency
  1. Participants in a study about managing financial risk did not fully exploit their edge in a coin-flipping game.
  2. Proper position sizing is crucial in gambling and financial markets to maximize returns and manage risk effectively.
  3. Understanding and applying formulas like Kelly's criterion can help in making optimal bets and improving performance in investing.

Margin of Safety

Axial • 7 implied HN points • 26 Feb 24
💰 Finance Investing Value Risk management Market Analysis Portfolio Management
  1. Investing success involves focusing on undervalued securities with a margin of safety to protect against errors and volatility
  2. Prioritize avoiding losses over seeking speculative gains; learn from others' mistakes to compound returns over time
  3. Value investing requires independent thinking, estimating intrinsic value, and maintaining a margin of safety to achieve excess returns

How things work at Kima Ventures

Venture Prose • 79 implied HN points • 01 Feb 19
💼 Business Venture Capital Investment Workflow Portfolio Management Communication
  1. Kima Ventures tracks dealflow opportunities using in-house tools, not CRM platforms, and follows a weekly workflow for managing new opportunities.
  2. They manage meetings and communication by logging them on Google Calendar and Airtable, aiming to keep to-do lists short and manageable.
  3. The team has efficient processes for decision-making, investing, and portfolio management, utilizing various tools and software for tracking deals and progress.

January 2019 Data Update 4: The Many Faces of Risk!

Musings on Markets • 19 implied HN points • 21 Jan 19
💰 Finance Investing Risk Analysis Market Trends Portfolio Management Valuation
  1. Investing in stocks comes with various risks. It's important to see risk as a spectrum rather than just something that is present or absent in investments.
  2. Different types of risks can affect a company, and it's crucial to understand where these risks come from. Making smart investment choices often involves tackling the risks that seem the hardest.
  3. The way you measure risk matters and depends on how you invest. You might choose different metrics for assessing risk based on whether you're a long-term investor or a short-term trader.

Gold, fine art and collectibles...

Musings on Markets • 0 implied HN points • 10 Oct 08
💰 Finance Investing Assets Market Trends Economic Factors Portfolio Management
  1. Investments like gold, fine art, and collectibles don't generate cash flow and are driven by people's perceptions. They can seem appealing during financial crises when people lose faith in traditional assets.
  2. In tough times, many investors turn to tangible assets like gold or collectibles to feel more secure about their investments. These items tend to hold value when other investments decline.
  3. While these assets can serve as a form of insurance in a portfolio, their long-term returns can be low. It's smart to include them for diversity, but they shouldn't be the main focus of your investments.

Diversification: Why is it not working?

Musings on Markets • 0 implied HN points • 08 Oct 08
💰 Finance Investing Markets Risk management Portfolio Management Behavioral Finance
  1. Diversification is important for investors, but its benefits have decreased recently. Investors now see more risks across different markets than before.
  2. The connection between different stock markets has increased, meaning that a crisis in one area can affect many others. This makes diversification less effective.
  3. Real estate risks have become more linked to the stock market because of how properties are now invested in. So spreading money across asset classes offers less protection than it used to.

Designer and PM portfolios are all wrong

A Better Designed World • 0 implied HN points • 22 Oct 24
🪑 Design Graphic design Product Design User Experience Portfolio Management Marketing Strategies
  1. Portfolios should act like sales pitches, showing off your best work first. Starting with the end results captures attention, instead of leading with process details.
  2. Using the inverted pyramid approach means telling a clear story of who you worked with, what you accomplished, and why it matters. This way, people can easily understand your impact.
  3. Focus on marketing yourself effectively. It's about showing potential employers what makes you valuable, rather than getting lost in the details of your process.

Are you a value investor? Take the Apple test

Musings on Markets • 0 implied HN points • 28 Jan 13
💰 Finance Investing Stock Market Valuation Portfolio Management Financial Analysis
  1. There are three types of investors in Apple right now: those focused on market prices, those skeptical about the company's true value, and those who see it as a bargain. Each group has a different approach to investing.
  2. Value investors should be confident in their assessments and not let market trends sway their decisions. It's important to stick to your analysis, especially in uncertain times.
  3. When investing, think about buying a part of the company, not just stock. It's also wise to avoid getting too caught up in daily news and wait for the right moment, even if it's hard to predict.

How to build an optimal portfolio?

Reminiscences Of A Young & Naïve Financier • 0 implied HN points • 21 Feb 23
💰 Finance Investing Portfolio Management Diversification Asset Classes Risk management
  1. Risk and return are interconnected in investing - higher risk typically means higher expected return.
  2. Diversification is key to building an optimal portfolio - uncorrelated assets help to reduce risk while maintaining returns.
  3. Asset classes like Gold, even with historically low returns, can play a vital role in a diversified portfolio due to their uncorrelated benefits.

Another Market Crisis? My Survival Manual/Journal!

Musings on Markets • 0 implied HN points • 26 Aug 15
💰 Finance Market Analysis Investment Strategies Risk management Economic Trends Portfolio Management
  1. Market crises cause a sharp increase in the price of risk, which leads to a drop in the value of risky assets. It's important to keep an eye on this price of risk to understand market movements.
  2. During a crisis, liquidity becomes very important. Investors prefer liquid assets more than ever, and companies with strong cash positions generally fare better.
  3. It's easy to panic during market downturns, but it's crucial to stick to a personal investment strategy. Taking a step back and avoiding constant checking of the market can help manage anxiety.

Model Portfolio: Too Big to Fail

Theory A : Visualize Value Investing • 0 implied HN points • 19 Mar 23
💰 Finance Investing Stocks Analysis Portfolio Management Financial advice
  1. The FIRE movement recommends dollar cost averaging into low cost index funds like SPY for potential returns of 7-8% annually.
  2. The 'Too Big to Fail' portfolio selects high-quality subset of SP500 companies based on certain criteria for potential outperformance.
  3. Key companies like Adobe, Johnson & Johnson, and Intuit are part of the selected portfolio due to strong financial performance and future growth expectations.

Death and Taxes at year end: Unpredictable Certainties

Musings on Markets • 0 implied HN points • 30 Dec 12
💰 Finance Investing Taxation Portfolio Management Economic Policy Market Trends
  1. The goal of investing is to make more money after taxes, not just to pay less in taxes. It's better to focus on good investments rather than making choices just to avoid taxes.
  2. When looking at the value of a company, ignore your personal tax situation at first. You should think about taxes later when comparing similar investment options.
  3. The best way to reduce taxes on your investments is to have a long-term investment strategy. Holding on to investments longer means you pay less in taxes overall.

The "dividend tax" cliff approaches: Implications for stocks

Musings on Markets • 0 implied HN points • 27 Sep 12
💰 Finance Investing Taxation Stock Market Portfolio Management Economic Policy
  1. The potential increase in dividend tax rates could lead to lower stock prices, especially for high-dividend stocks. If taxes go up, investors may demand higher returns, which could make stocks less appealing.
  2. Different types of stocks will be affected differently by tax changes. High dividend-paying stocks might see larger price drops compared to those that don't pay dividends.
  3. Investors might already expect tax law changes to affect stock prices. However, companies may not change their dividend policies even if taxes increase, as they usually stick to their dividend practices.

Passive Value investing: Screening for bargains

Musings on Markets • 0 implied HN points • 12 Jun 12
💰 Finance Investing Stock Market Value investing Financial Analysis Portfolio Management
  1. Value investing helps you find cheap stocks by using specific criteria. You can look for things like low price-to-earnings ratios and high dividend yields to spot bargains.
  2. While screening for cheap stocks can be effective, it takes time and patience to see good returns. Often, the best results come over longer periods rather than right away.
  3. Using a structured approach is key to successful investing. Combine different screens and analyses to get a clearer picture of the stock's potential for growth and risk.

How much diversification is too much?

Musings on Markets • 0 implied HN points • 27 Nov 11
💰 Finance Investing Portfolio Management Risk Assessment Market Analysis Behavioral Finance
  1. Diversification helps reduce risk in investing. It's generally better to spread your money across various investments instead of putting it all in one stock.
  2. Some investors completely avoid diversification and focus on a few stocks because they believe they have a better understanding of the market. However, this can be risky if they are overconfident.
  3. Research shows that most individual investors are not well diversified and often miss out on better returns by being overly concentrated in fewer stocks. Diversifying can lead to more stable and higher returns overall.

Luck versus skill: How can you tell?

Musings on Markets • 0 implied HN points • 12 Mar 11
💰 Finance Investment Risk management Behavioral Finance Market Analysis Portfolio Management
  1. It can be hard to tell if someone in finance is successful because of luck or skill. This confusion makes it tricky to reward them appropriately.
  2. In sports, it's easier to see skill because success is clear and happens often, while in finance, success is more subjective and can happen by chance.
  3. To find skilled investors or managers, look for those who are consistent in their success, transparent about their strategies, and humble enough to acknowledge the role of luck.

High dividend stocks: Do they beat the market?

Musings on Markets • 0 implied HN points • 04 Oct 10
💰 Finance Investing Stocks Dividends Market Analysis Portfolio Management Investing Stocks Dividends Market Analysis Taxation
  1. Investing in high dividend stocks can potentially yield higher returns compared to index funds, but it comes with risks. It's important to carefully choose companies that have stable dividends and solid financial health.
  2. Dividends can be cut by companies, meaning they aren't always reliable income sources. Investors should consider the potential for companies to reduce or eliminate these payments.
  3. Investors should aim for a diversified portfolio of high dividend stocks to minimize risk. This can help protect against downturns in specific sectors or companies.

Transactions Costs and Beating the Market

Musings on Markets • 0 implied HN points • 15 Feb 10
💰 Finance Investing Market Analysis Portfolio Management Behavioral Finance Transaction Costs Investing Market Analysis Behavioral Finance Portfolio Management Trading Strategies
  1. There are many ways to beat the market that sound good on paper, but very few fund managers actually succeed in doing it consistently in real life.
  2. One major reason for this failure is the impact of transaction costs, which include fees from buying and selling stocks and the difference between buying and selling prices.
  3. While the market has inefficiencies, it's difficult for investors to profit from them in practice, making real investment success much harder than it seems.

Buffett and Munger... Shock value!

Musings on Markets • 0 implied HN points • 02 May 09
💰 Finance Investing Market Theory Portfolio Management Financial Analysis Economic Trends Investing Market Theory Portfolio Management Investment strategy Financial Analysis
  1. Warren Buffett and Charlie Munger often challenge common investing practices, suggesting that many popular ideas are overly complex and not sensible. They believe that simplicity and common sense should guide investment decisions.
  2. Buffett argues against relying too much on complicated math in finance, indicating that it can lead to bad decisions. He feels that common sense should play a bigger role than high-level calculations.
  3. Both Buffett and Munger highlight that innovative ideas in finance can face resistance, often taking time to be accepted. They suggest that the solution is to keep generating new ideas rather than giving up.